The Term Excess Returns Is Commonly Defined As

question 36

Multiple Choice

The term excess returns is commonly defined as:

• A)total portfolio returns, minus the market rate.
• B)total portfolio returns, minus the risk-free rate.
• C)(portfolio returns minus the risk-free rate) divided by beta.
• D)None of the above

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Definitions:

Intrinsic Motivation

A drive to engage in activities for their own sake, where the activities are inherently enjoyable or satisfying without any external reward.

Process

A series of actions or steps taken to achieve a particular end.

Stimulus Motive

Innate tendencies that prompt individuals to engage in behaviors without being aware of the reason for doing so, driven by external stimuli.

Incentives

External rewards or stimuli that motivate behavior or encourage action towards a desired goal.